Wednesday, 12 July 2017

How to save for your first home

Buying a house is tough and often people of my generation have to get help to get a foot on the property ladder, I'm not ashamed to say we received help with our deposit and I will always be extremely grateful that we were given that opportunity, however we worked and saved incredibly hard for what we've got as there's so many other things to factor in such as legal fees, furniture and appliances and making sure you have a healthy bank balance to get you started with paying bills etc, all of which we did on our own.

Today I thought I'd share with you some easy and achievable ways to save for your first home.

1. Turn your holiday into a staycation rather than a vacation - I've written about the money saving benefits of a staycation before here. Everyone needs a break from work it's just about compromising a little and being savvy with your money. Previous to going to Florida in 2015 Josh and I hadn't been abroad since 2010. Staycation's allowed us to explore some beautiful parts of the UK too. It's surprising what's on your doorstep sometimes!
2. Pay money into a savings account the same day you get paid - Josh and I set up a joint account around 3 years ago specifically to save for our first home, we always made sure (and still do) to pay a set amount into the joint account the same day we are paid. This prevents you accidentally over spending throughout the month leaving you with less money to save.
3. Set a weekly budget - factor in everything you need to pay for in a week and take that amount out of the bank. Using cash rather than cards gives you more of a visual representation of what you are spending and not using cards again prevents over spending. We all like to treat ourselves now and again but try to stick to the weekly budget more than treating yourself. Any money left over at the end of the month can then be saved.
4. Leave your cards at home - when you've withdrawn your weekly budget, leave your cards at home. It's far too easy to pay with your card as it's essentially invisible money. When you pay in cash you can physically see your money going down and it prevents you from being frivolous.
5. Enjoy free activities - just because your saving doesn't mean to say you can't have fun. There's a bunch of stuff you can do for free/cheap such as going for a walk, having a movie night with a selection of films and snacks, having a picnic, baking. The list could go on.

The harsh reality of saving for your first home is there has to be some cut backs and compromises and you really do have to save, save, save but I promise you, it's completely worth it!

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